BUZZ-U.S. Financials ETF: Wading back into the channel

** Financials down >3 pct on Tues, worst performing S&P 500 sector on the day as big U.S. banks fall amid political turmoil in Italy and Spain and drop in Treasury yields

** Financial Select Sector SPDR Fund once again threatening to fall back inside a multi-year channel, suggesting risk for more significant trend inflection. Chart: https://reut.rs/2L0oLI8

** From its 2009 low, XLF trended up in well defined channel, before ultimately exiting this pattern with its Oct (Shenzhen: 000069.SZ - news) 2017 upward breakout

** ETF popped toward its all-time high ($30.98) reaching $30.33 in late Jan, before reversed, returned to test former channel resistance line, now support (~$26.95 monthly basis May)

** XLF down as much as 13 pct from its Jan top, and recent bounce shallow, unable to push above resistance line from Jan high (now $29.25 monthly basis)

** This as S&P Banks Index attempt to vault higher also failed shy of its resistance

** XLF not only threatening to end May back inside channel, but also at risk for first monthly close below rising 12-MMA (now $26.91) since Jun 2016 Brexit panic

** Such a turn can suggest risk for more significant retreat with Sept 2017 trough ($23.79), ~12 pct below last price, and support line from 2009 low (~$19.50), ~28 pct below last

** Meanwhile, despite setback, U.S. financials outperforming European counterparts: XLF - iShares MSCI Europe Financial ETF spread hitting all-time high

** That said, with financials badly lagging tech, growth/value ratio hitting fresh high back to summer 2000